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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: YanivBA who wrote (69179)	8/31/2006 12:32:23 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

I've been reading your comments, and picked up on one where you said (correct me if I'm wrong) in effect that bank credit isn't exactly money? I'd say that bank credit is money, but of the fleeting sort, that it can evaporate if the securities (mostly asset backed) backing them are crushed. That's why credit spreads and conditions are the most important part of the equation now. However, these spreads are being falsely prompt up by command and control central banks, especially FCBs. Broad (non-Brazil America) money supply in my view will only fade when the prices of all these garbage debt securities plunge. If those securities then start to default, then look out. Until then, conditions will remain very inflationary given the double digit run rate this crap is put out at.